Report Summary
This report provides members of the Resources Committee with an overview of the financial position of the SPA and Police Scotland for period 1 of the financial year 2024/25.
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Meeting
The publication discussed was referenced in the meeting below
Resources Committee -19 June 2024
Date : 19 June 2024
Location : online
Background
The Board approved the 2024-25 annual budget on 21 March 2024. This budget set out the spending plans for Police Scotland, Forensic Services and SPA Corporate regarding revenue, capital, and reform for FY 2024-25.
The Authority received a core revenue funding increase of £75.7m (5.6%), £18.4m of which was required to meet the additional cost of the 2023-24 pay award.
Anticipated cost pressures (premises costs, new technology, ill health retirals, injury pensions), inflationary pressures and assumptions for 2024-25 pay have been included within the budget build. The budget report highlighted the key budgeting assumptions that are sensitive to change, and which could result in a pressure or opportunity against the 2024/25 budget. The overall financial position will be monitored throughout the year.
The budget allocation for 2024-25 includes a core budget for a maximum of 16,600 officers (plus externally funded additionality e.g. Local Authorities) and police staff at 2023-24 budgeted levels. A 3.7% reduction was applied to the 2023-24 budget however, this was not achieved and is now being delivered in 2024-25 through a voluntary redundancy and voluntary early retirement (VR/VER) programme. There is sufficient flexibility in the budget to make amendments to workforce mix if required.
A change in the employer pension contribution rates payable has resulted in a short-term benefit for the organisation. As this will be non-recurring and cannot be used to fund ongoing pressures this will be utilised to fund VR/VER exit packages.
Capital funding of £66.1m (including capital receipts and IFRS 16 adjustments) has been confirmed for 2024-25, representing an uplift of £11.7m (22.1%). While the capital settlement is an improvement on the flat cash of the previous year, it is less than requested through the budget proposal submitted to Scottish Government and as such an element of prioritisation has had to take place. Capital receipts estimates will be updated when future disposal plans are confirmed following public consultation.
Similar to previous years, £25.0m has been ring-fenced to support reform and transformation.
Capital and reform allocations have been made in line with the Chief Constables priorities of service delivery against areas of greatest threat, risk and harm, strong investment in digital capabilities, focus on change that most benefit our communities and people and spend to save initiatives.
